Japanese semiconductor materials developers are increasing capital expenditures to serve customers who are preparing for mass production of advanced 2-nanometer chips.
Tokyo Sakura Industrial Co., Ltd.'s chips
According to President Noriaki Taneichi, chemical supplier Tokyo Sakura Industries, Ltd. will invest 20 billion yen ($130 million) to build a photoresist factory in South Korea.
Located in Pyeongtaek, a suburb of Seoul, the factory is expected to begin production in 2030, tripling to quadrupling Tokyo Sakura Semiconductor's capacity in South Korea. Detailed plans are expected to be finalized around 2027. Samsung Electronics and SK Hynix will be customers for the factory's semiconductor packaging (including memory).
In October, Samsung and SK Hynix signed a procurement agreement with US-based OpenAI for data center server memory chips. Tokyo Sakura hopes to be able to quickly supply photoresist near chip manufacturers' factories.
Photoresist is a material that determines chip miniaturization and performance. Tokyo Sakura is a leading manufacturer of this photosensitive material, while Japanese manufacturers, including JSR, control 91% of the global market share.
Tokyo Sakura Pharmaceutical Co., Ltd. also plans to invest 12 billion yen in South Korea to build a factory to produce high-purity chemicals used in semiconductor manufacturing.
Samsung and TSMC's vision on 2-nanometer chips this year
Samsung and TSMC are expected to begin mass production of 2-nanometer chips this year. Japanese chipmaker Rapidus plans to follow suit in 2027.
TSMC plans to begin producing next-generation products using its 1.4-nanometer process in 2028.
To address these developments, Adeka is preparing to supply advanced materials. The company will invest 3.2 billion yen to install a mass production facility for new photoresist materials at a factory in Ibaraki Prefecture. This facility is expected to be operational by April 2028 or later, producing metal compounds that will form the core material for a new type of photoresist called metal oxide photoresist (MOR).
MOR lithography is used in extreme ultraviolet lithography to manufacture advanced chips. Unlike traditional metal-free photoresists, MOR photoresists achieve higher resolution and are said to be better suited for manufacturing ultra-fine circuits.
JSR is also building a MOR factory in South Korea, which is expected to begin production by the end of next year.
According to PwC, the global chip materials market is projected to reach $97 billion by 2030, a 35% increase from $72 billion in 2024. Demand for advanced chips remains strong in the artificial intelligence sector. As chip stacking height and density continue to increase, individual chip packages typically require more materials.
While South Korean and Taiwanese companies lead in advanced chip manufacturing, Japanese companies dominate the raw materials sector. With surging chip demand and growing concerns about raw material shortages, manufacturers are racing to invest to secure stable supplies.
Nitto Boshoku will build a new 15 billion yen plant in Fukushima Prefecture, expected to begin production in 2027, tripling its capacity for specialty glass materials.
Asahi Kasei will invest 16 billion yen to add an insulation materials production line to a plant in Shizuoka Prefecture. The company plans to begin production in the first half of fiscal year 2028.
Source: Content compiled from Nikkei
